Author Topic: Advertising Allowance  (Read 249 times)

Offline munna99185

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Advertising Allowance
« on: April 04, 2014, 12:50:06 PM »
Money that a product manufacturer or service provider pays to a retailer to get the word out about a product. The company may establish requirements for the retailer to receive the allowance, such as getting the company's approval of the advertisement before it is displayed and providing proof that the advertisement was made. By helping the retailer pay its advertising costs, the company's advertising allowance gives the retailer an incentive to carry that product.

For example, let's say an educational toy store carries a board game that helps children learn about personal finance. The toy store publishes a quarterly catalog in which it advertises the board game by showing a photo of children playing the game and providing a one-paragraph description of the game. The board game manufacturer would typically pay an advertising allowance to the toy store to help offset the expense of marketing the board game in the catalog. These expenses might include a fraction of the catalog's printing and mailing costs or discount in the board game's wholesale cost.
[Source: http://www.investopedia.com/terms/a/advertising-allowance.asp]


Sayed Farrukh Ahmed
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Daffodil International University

Offline Jeta Majumder

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Re: Advertising Allowance
« Reply #1 on: April 08, 2014, 04:36:21 PM »
sometimes it helps the service providers to gain competitive advantage over other competitors because retailers promote the manufacturers' product only.

Offline Nusrat Nargis

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Re: Advertising Allowance
« Reply #2 on: April 08, 2014, 05:42:02 PM »
nice one sir.
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Offline gour2010

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Re: Advertising Allowance
« Reply #3 on: April 15, 2014, 10:09:27 AM »
This is very good post